Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective

Original Sheet No. 257 Original Sheet No. 257 : Superseded

GENERAL TERMS AND CONDITIONS

14. TRANSITION COSTS AND EXIT FEES (Cont'd)

14.2 Gas Supply Realignment Costs

Subject to the provisions of the Stipulation and Agreement

(November 24, 1992) in Docket Nos. RP89-183-045, et al., approved

by Commission order issued March 12, 1993 (at 62 FERC 61,240),

this Article 14.2 establishes the procedures under which WNG will

recover its Gas Supply Realignment (GSR) Costs. In the event WNG

incurs GSR Costs not recovered under the Stipulation and

Agreement or Articles 27 and 28, WNG may file to recover costs

pursuant to this Article 14 using the allocation method

specified herein, or any other allocation method subject to

approval by the Commission.

(a) WNG will make quarterly filings, as needed, to recover any

GSR Costs actually incurred and booked by the end of the

quarter preceding the filing, and which are known and

measurable, plus carrying charges calculated from the date

of incurrence of such GSR Costs to the projected date of

payment as determined pursuant to Section 154.305 of the

Commission's regulations.

(b) Prior to making any gas supply realignment payments to

suppliers which would be recoverable under this Article

14.2, WNG will offer to assign any contract(s), which it

proposes to realign to its former Rate Schedule F, PR(A),

PR(B) and P customers or to any other Shipper(s) on its

system.